Price indexes measure changes in prices received, or paid, by producers of commodities and are used extensively to analyse and monitor price behaviour. In Australia they generally relate to prices for goods and services as they affect businesses, for example the input price of materials used in the building industry. A more detailed explanation of price indexes is contained in Prices.

Output of the building industry

The price index of the output of the building industry rose by 1.9% in 2001-02 (table 20.17). As the index is compiled using basic prices (before the imposition of indirect taxes on products and any transport and trade margins) the price movements exclude the impact of The New Tax System.

20.17 PRICE INDEX OF THEOUTPUT OF THE BUILDING INDUSTRY(a)

Index

change

no.

%

1996-97

94.3

n.a.

1997-98

97.0

2.8

1998-99

100.0

3.1

1999-2000

104.9

4.9

2000-01

106.5

1.5

2001-02

108.5

1.9

(a) Reference baseyear 1998-99 = 100.0.

Source: Producer Price Indexes, Australia (6427.0).

Price index of materials used in house building

The all groups index (a weighted average of the six state capital cities) rose by 1.6 index points in 2001-02, following an identical rise in 2000-01. Table 20.18 shows that there were rises in all capital cities, with Hobart experiencing the largest (2.4 index points).

20.18 PRICE INDEX OF MATERIALS USED IN HOUSE BUILDING(a)(b)

Weighted average of six state capital cities

Sydney

Melbourne

Brisbane

Adelaide

Perth

Hobart

1994-95

115.4

115.0

115.9

115.9

118.8

112.7

117.3

1995-96

115.7

115.9

115.4

115.1

118.2

114.8

120.7

1996-97

116.1

116.3

115.3

115.3

120.6

115.3

120.1

1997-98

118.2

119.7

117.1

117.1

123.3

115.9

121.0

1998-99

119.5

121.6

118.0

118.2

125.0

116.1

122.2

1999-2000

122.8

126.8

121.7

120.8

127.2

117.7

123.8

2000-01

124.4

130.0

123.1

120.6

129.6

118.8

126.0

2001-02

126.0

132.0

125.0

122.0

130.6

119.4

128.4

(a) Reference base year 1989-90 = 100.0.(b) The separate city indexes measure price movement within each city individually. They do not compare price levels between cities.

Source: Producer Price Indexes, Australia (6427.0).

Price index of materials used in building other than house building

In 2001-02, the price index for materials used in building other than house building grew by 2.2 index points (table 20.19). Melbourne had the largest movement (2.4 index points). The growth for the weighted average of six state capital cities was slightly higher than in the previous five years.

20.19 PRICE INDEX OF MATERIALS USED IN BUILDING OTHER THAN HOUSE BUILDING(a)(b)

Weighted average of six state capital cities

Sydney

Melbourne

Brisbane

Adelaide

Perth

Hobart

1994-95

110.4

110.3

108.9

112.9

110.9

110.1

112.2

1995-96

112.7

112.6

111.1

115.0

112.7

113.2

115.1

1996-97

113.2

113.1

110.9

115.9

114.1

114.6

116.3

1997-98

114.2

114.4

111.4

117.2

115.1

114.6

117.4

1998-99

115.2

115.2

113.2

118.4

115.5

114.1

118.5

1999-2000

116.1

116.0

114.4

119.3

116.1

115.4

119.0

2000-01

116.4

116.1

115.4

119.1

116.8

115.6

119.3

2001-02

118.6

118.2

117.8

120.8

118.8

117.7

121.3

(a) Reference base year 1989-90 = 100.0.(b) The separate city indexes measure price movements within each city individually. They do not compare price levels between cities.

Source: Producer Price Indexes, Australia (6427.0).

The composition of the index in terms of the materials used is presented in the table 20.20. This shows that the rise in the index reflected increases between 2000-01 and 2001-02 in most of the selected materials components. The exception was Steel decking cladding and sheet products (which fell by 1.0 index points after a 3.6 index point rise between 1999-2000 and 2000-01). The index of Ready mixed concrete ceased a falling trend which had started from 1997-98, when the index was at 107.2, to stabilise between 2000-01 and 2001-02 at 99.7 index points.

20.20 PRICE INDEX OF MATERIALS USED IN BUILDING OTHER THAN HOUSE BUILDING(a), By type of material

1995-96

1996-97

1997-98

1998-99

1999-2000

2000-01

2001-02

Structural timber

120.5

116.4

121.7

125.4

131.1

134.3

134.7

Clay bricks

110.0

108.7

114.6

119.1

123.7

128.0

128.7

Ready mixed concrete

108.2

106.6

107.2

106.3

103.6

99.7

99.7

Steel decking cladding and sheet products

110.9

112.9

114.9

114.4

114.9

118.5

117.5

Structural steel

109.3

112.5

113.1

113.4

112.0

113.1

115.1

Reinforcing steel bar fabric and mesh

112.0

111.6

112.7

109.9

104.5

102.4

103.1

Aluminium windows

108.4

108.5

109.0

110.5

114.3

119.9

122.7

Non-ferrous pipes and fittings

129.4

128.8

135.6

128.6

131.5

141.0

142.7

Builders’ hardware

119.5

118.3

120.0

123.4

130.0

135.9

139.3

Paint and other coatings

129.1

135.7

136.0

142.7

148.8

152.2

154.6

All groups

112.7

113.2

114.2

115.2

116.1

116.4

118.6

(a) Reference base year 1989-90 = 100.0.

Source: Price Index of Materials Used in Building Other Than House Building, Six State Capital Cities (6407.0).

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